Woodside has struck an agreement with the Timor-Leste government that sets a path toward choosing the site for Greater Sunrise's LNG processing facilities by mid-2026, a milestone in one of the region's longest-running undeveloped gas ventures.

The new deal sparks off a concept study to weigh Timor-Leste and Australian development options, with production targeted for 2028–30. Amazingly, the fields were first discovered in 1974.

The pivotal development comes as Woodside's lead on the Greater Sunrise project gave an update on the scheme at a conference in Timor-Leste, hinting that LNG processing facilities based in the island nation could be the preferred option.

Julie Fallon, Woodside's executive vice president, technical and energy development, spoke this morning at the Timor-Leste Energy, Mining and Business Forum in the nation's capital of Dili. And what she said will have no doubt been heard loud and clear.

"We are committed to working closely with the Timor-Leste and Australian Governments, the Greater Sunrise joint venture participants and local communities to ensure that the benefits of greater sunrise are widely shared while meeting all applicable regulatory and contractual obligations," she said.

Fallon spoke warmly and enthusiastically about a recent visit to Timor-Leste's south coast, including a visit to Natarbora – which she pointedly described as the "anticipated LNG project location."

"I witnessed firsthand the aspirations of the Timor-Leste people for a future LNG development and the transformative potential that it holds…This experience reaffirmed Woodside's shared commitment with our various stakeholders, including the Ministry for Petroleum and Mineral Resources, for unlocking the benefits of Greater Sunrise for Timor-Leste," she said.

New deal

After Fallon's speech, the parties signed the new agreement notice, signalling a moment of distinct progress on the project.

"It is an absolute honour to join you today for this important occasion. The signing of this cooperation agreement between the Ministry of Petroleum and Mineral Resources of Timor Leste and Woodside Energy marks a significant milestone in our shared journey to unlock the value of the greater Sunrise gas fields," said Fallon.

Under this agreement, we will progress technical and commercial studies for greenfield LNG development. These activities will run in parallel to the ongoing negotiations on fiscal and regulatory frameworks, ensuring that we build a foundation that is robust, sustainable and attractive to investment.

"We're excited to begin this journey together. The work ahead is significant, but we're ready to tackle it with energy and determination. This is our moment to turn ambition into action and make real progress for Timor-Leste and all partners involved," she added.

The nation's Francisco da Costa Monteiro, Timor Leste's resources and petroleum minister, added: "The agreement also includes a highway, a high-level plan, outlining the key activities that need to be carried out. These include the work required to reach concept selections by mid next year…and prepare for subsequent investment decisions."

Woodside CEO Meg O'Neill welcomed the Agreement, stating it reflected the next step in the relationship and shared commitment to the development of the Greater Sunrise fields. 

"This work is an extension of last year's concept study and will address the remaining considerations required to reach concept selection, such as agreeing the most appropriate downstream commercial structure to attract financing and understanding the preferred route of the gas export pipeline."

Greater Sunrise fields

Discovered 1974, the Greater Sunrise fields hold a total estimated contingent resource of 5.3 trillion cubic feet of natural gas and 226 million barrels of condensate making it one of the most significant undeveloped gas resources in the region.

As Fallon pointed out – as if anyone was not fully aware - "The successful development of these fields offers both Australia and Timor-Leste an opportunity to generate stable and significant cash flow over a period of potentially 30 years, providing the Greater Sunrise joint venture with the potential shareholder value and growth."

But with the fields halfway between Australia and Timor-Leste, the question is where will the Greater Sunrise joint venture - comprising TIMOR GAP (56.56%), operator Woodside (33.44%), and Osaka Gas Australia (10%) – opt to build the LNG processing plant – in Natabora or on Australian soil?

According to Monteiro there is only one option.

"The government's position on Greater Sunrise has always been clear - the natural gas from Greater Sunrise must be processed onshore in Timor-Leste - this is essential for national development.

"It will provide new opportunities for young communities to gain skills in participating industries and contribute to the long term strength of our country…Onshore processing will ensure that the value generated by Greater Sunrise remains in Timor-Leste and supports nation building," he said in his keynote address.

As reported by ENB, Jose Ramos-Horta, the nation's president, who is coming to Perth next month and will likely bang his country's drum as loudly as possible in Woodside's hometown, is also adamant that Timor-Leste is the best option.

"We have much lower labour costs, much lower tax, and much lower government intrusion in oil and gas than Australia does," Ramos-Horta  told The Australian newspaper

"Australia has a federal, a state, a territory, a regulation, you have very complex environmental regulations, heavy tax, heavy labour costs. "It's much cheaper to do it here than in Darwin. Australia has endless sources of gas and oil, it doesn't need the gas from Greater Sunrise to also go to Darwin.

"It's only fair that Greater Sunrise comes to East Timor for the development of our country, for the future of this country, for peace, for stability." 

Leaning to TL?

With Woodside growing increasingly vocal about the challenges of investing in Australia, the options seems to be gaining traction.

In its most recent quarterly report, Woodside said it remained engaged with both the Timor-Leste and Australian governments "to evaluate and address technical and commercial factors that support the intended development of the fields" and had visited a potential LNG plant location on Timor-Leste's southern coast.

Fallon gave the Dili audience an update on this element of the project.

"Currently our efforts are concentrated on the technical, commercial and finance work required to support concept selection for the Woodside team. This includes evaluating and understanding every element of the development, assessing infrastructure requirements and conducting studies to define the scope of facilities and systems needed for a safe, efficient and commercially viable project.

"These activities involve analysis of potential facility configuration, preliminary design work and integration studies to ensure that when the time is right, we can achieve alignment between upstream and downstream components," she said.

"Concept select phase is critical. It defines the path ahead, reduces uncertainty and improves confidence in the project's ideology," Fallon added, surely hoping Canberra was listening clearly.